With Lower Taxes Coming, Check out Ca...
Home  »  Community News  »  With Lower Taxes Com...
Nov
6
Ida Hansen
With Lower Taxes Coming, Check out Canon!
Blog
0
, , , , ,

The election in the United States was good for the Republican party, which should result in lower taxes.

That makes consumer good stocks such as Wal-Mart (NYSE: WMT), Apple (NASDAQ: AAPL), and others more attractive.  With more discretionary income, or spending money, Americans will be able to buy more products.  This is a major reason to consider buying shares of Canon (NYSE: CAJ), the Japanese consumer electronics firms.

Canon sells products ranging from cameras to office printers.

It is down for the last month, quarter, six months, and year of market action.  For 2014, Canon is off by just over 3 percent.  But for the last week of market action, Canon has rallied by nearly 4.25 percent (chart below).

That short term surge highlights the appeal of Canon for long term investors!

Earnings per share growth is strong for Canon.  That makes it appealing to growth investors.  On a quarterly basis, earnings growth is at 29.60 percent.  Obviously a mark that high cannot be maintained, especially for a company with a market capitalization of over $40 billion.  But earnings per share growth for the next year is projected to be 9.60 percent, which solid.

The balance sheet and the dividend are also solid.

There is no debt on the balance sheet.  That is very attractive for any company, particularly a major exporter.  The dividend yield of almost 3.60 percent is very appealing, too.  That makes Canon appealing to income investors.  With no debt on the balance sheet, the dividend faces no competition of the cash flow.

Canon should be helped by the falling value of the Japanese Yen.

When a currency declines, the goods and services priced in it start trading at a discount.  Canon is benefiting from the Japanese Yen plunging due to the continuation of quantitative easing by the Bank of Japan for the island nation.  For long term investors, its growth and dividend yield will add up to a rewarding total return.

 



Share on StockTwits

Leave a reply

Your email address will not be published. Required fields are marked *